Future Business Leaders of America (FBLA) Accounting Practice Test

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Prepare for the FBLA Accounting Test with practice quizzes and comprehensive questions. Each question is designed to help deepen your understanding and enhance your readiness for the exam. Are you ready to excel?

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What is a stop payment order?

A request to stop a bank service charge
A demand to prevent honoring a certain check
An instruction to cancel a bank account
A request to transfer funds between accounts

The correct answer is: A demand to prevent honoring a certain check

A stop payment order is specifically a demand made to a financial institution to prevent the bank from honoring a particular check or payment that has been issued. This request can be made by the account holder when they believe that the check has been lost, stolen, or if there is a dispute about the transaction for which the check was issued. The validity of this request generally lasts for a specified period or until the check is reactivated if the situation changes. It is important for account holders to be aware of any fees associated with placing a stop payment order and the specific conditions under which it can be executed. This concept is critical for managing potential fraud or unauthorized transactions while ensuring that financial obligations are appropriately handled. The other choices relate to different banking actions; however, they do not accurately describe the specific nature of a stop payment order, which is solely focused on preventing the processing of a particular check.